Home » Mixed Progress, Urgent Gaps: Why Financing Remains the Biggest Barrier to Global Forest Goals

Mixed Progress, Urgent Gaps: Why Financing Remains the Biggest Barrier to Global Forest Goals

by CEDARE Team

The Global Forest Goals Report 2026, recently published by the United Nations Department of Economic and Social Affairs, presents a mixed but urgent assessment of progress toward the six Global Forest Goals (GFGs) of the UN Strategic Plan for Forests 2017–2030. Drawing on 48 voluntary national reports as well as the FAO’s Global Forest Resources Assessment 2025, the report finds that while several targets are broadly met, such as expanding protected forests, increasing certified forest area, and improving forest information systems, two critical targets are off track: reversing global forest cover loss (Target 1.1) and eradicating extreme poverty among forest-dependent people (Target 2.1). Despite a net reduction in the rate of forest loss globally between 1990 and 2000, total forest area declined by over 40 million hectares between 2015 and 2025, with primary forests, irreplaceable for biodiversity and carbon storage, shrinking by 16 million hectares, primarily in South America and Africa.

The report also positions forests as central to Nature-based Solutions (NbS) for climate mitigation, biodiversity conservation, and land restoration, but it also highlights critical implementation gaps. Many countries are using forest restoration, reforestation, and afforestation as core NbS to enhance carbon sinks, stabilize landscapes, and reduce vulnerability to extreme events such as floods and droughts. However, the report warns that simply measuring net forest area gains masks the loss of high-integrity primary and intact forests, which are far more resilient and biodiverse than plantations or modified natural forests. It notes that forest degradation, often driven by wildfires, pests, and unsustainable harvesting, has been significantly underestimated in its impact on carbon and biodiversity, calling for NbS approaches to prioritize ecological integrity over mere tree cover. Furthermore, the report emphasizes that effective NbS require robust cross-sectoral coordination, secure tenure rights for Indigenous Peoples and local communities, and long-term financing – none of which are yet operating at sufficient scale. For nature-based solutions to deliver on their promise, the report argues that countries must move beyond afforestation targets and invest in protecting existing primary forests, restoring degraded landscapes with native species, and integrating forest resilience into national climate adaptation plans.

For developing countries, the report highlights a persistent financing gap as the biggest structural barrier, with global finance for sustainable forest management reaching only US$84 billion in 2023 – far below the estimated US$300 billion needed annually by 2030. Nearly 90 per cent of this comes from domestic public budgets, meaning that low- and lower-middle-income nations, despite having the greatest forest cover and highest deforestation risks, are expected to carry the heaviest burden with limited fiscal space. Private sector engagement remains minimal, contributing only about US$7.5 billion annually, mostly channelled through fragmented carbon markets and certified commodity value chains that lack standardized regulation. The report also identifies a critical “absorption gap”: even when financing strategies exist, many countries struggle to access funds due to weak project preparation capacity, unfamiliarity with donor eligibility requirements, and limited accredited entities to manage partnerships. Innovative mechanisms such as green bonds, debt-for-nature swaps, and results-based finance (e.g., REDD+) show promise but remain niche. The new Tropical Forest Forever Facility, launched by Brazil in 2025 with US$6.7 billion in initial pledges, aims to mobilize US$125 billion from sovereign wealth funds and institutional investors across more than 70 developing countries, yet its operational framework remains under development. Additionally, South-South cooperation, such as the Brazil-Mozambique collaboration on satellite-based deforestation monitoring, offers a growing pathway for technology transfer and capacity building beyond traditional North-South aid. The report concludes that without a fundamental shift from fragmented, short-term project funding to sustained, multi-source, and patient capital, including much greater private and philanthropic mobilization, the 2030 targets for sustainable forest management will remain out of reach.

For Arab countries, many of which face arid and semi-arid conditions, the report offers several strategic insights. First, forest contributions to food security and land restoration are highly relevant, as several Arab nations reported actions focused on dryland restoration, erosion control, and agroforestry to stabilize soils, reduce desertification, and provide wood fuel. Second, the report underscores the importance of integrating forests into national sustainable development and poverty reduction strategies; an area where some Arab countries might have room to expand. Third, the growing emphasis on national forest inventories, geospatial monitoring, and digital transparency offers a concrete entry point for Arab countries to strengthen their forest data systems, access international climate finance, and participate in regional cooperation platforms. The report’s finding that certification and long-term management plans remain heavily concentrated in Europe, Asia, and North America suggests that Arab countries could benefit from tailored, low-cost certification pathways for dryland forests and non-wood forest products. Finally, the call for policy coherence across agriculture, energy, and land-use planning is especially pertinent for Arab nations facing competing pressures from food security, urbanization, and infrastructure development.

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